Are you getting the value you expected from your PLM investment?
For many companies, the answer to this question is undeniably “NO!” Unprecedented business, product and IT complexities, coupled with pressures to optimize costs and increase efficiencies, are driving changes to the way global enterprises are looking at the product realization landscape. PLM is increasingly being seen as a strategic capability for maintaining competitive advantage. However, executives are under immense pressures to ensure the strategic intent of their PLM system, because enterprises have been unable to consistently maximize the business impact of the significant investments they have made in these systems. This inconsistency can be attributed to the value gaps that get introduced during the evolution of the Enterprise.
Challenges Faced by Enterprises as they Mature
- Silo development between functional units
- Incomplete PLM IT landscape
- Inability to continuously optimize product realization value stream
- Leverage partnerships and joint ventures to gain access to new customers, markets, expertise and technology
- Drive suppliers to co-innovate
- Differing PLM maturity across sites and business units
- Enable secure and seamless integration of suppliers and partners into business network
- Shifting suppliers to become partners
- Agility of configuring businesses for glocalization
Widening of the PLM Value Gap
As the enterprise travels through the evolutionary journey, value gaps are systematically introduced. These gaps will not only erode the PLM business value, but are going unnoticed. Our experience and external research indicate two levels of value gaps:
- Execution Gaps: Failure to unify processes and map them to the PLM system
- Technology Gaps: Failure to seamlessly integrate PLM across the extended enterprise
Deeper analysis reveals widening of the value gap due to the focus of PLM strategies on micro process optimization over macro optimization. This has led to inconsistent alignment of enterprise value elements, which is key to realizing the true value of PLM. It is critical for enterprises to align to the shift in PLM value realization strategies.
Beyond missing the expected ROI on your investment, these gaps drive up costs, reduce margins, narrow the window of market opportunity and introduce quality issues that damage reputation.
Don’t Face these Challenges Alone!
To minimize the value gap and successfully shift the value realization strategy, enterprises need to ensure
- A value driven assessment is performed in order to achieve an alignment between its business drivers and its IT initiatives
- Key performance indicators exist to drive implementation and promote efficiency and adoption
- Creation of a flexible backbone helping the enterprise expand beyond its PLM footprint
What ROI Should You Expect?
An organization should first expect to realize cycle time reduction from their investment in PLM. As the organization and the PLM system evolve, improvements in quality and collaboration should be achieved.
This is where Geometric can deliver significant value. Our experience in evolving customers’ PLM strategies across diverse industries has enabled Geometric to understand the challenges for seamlessly embracing this shift and to partner in systematically enhancing PLM business value.